UAW Sues GM Over Delphi Payments

The Detroit Free-Press reports that the United Auto Workers has filed a lawsuit against General Motors, claiming the auto maker owes the union $450 million in retiree health care for workers of its former parts division Delphi.

According to the lawsuit, GM is obligated to make the payments to the UAW’s Voluntary Employee Beneficiary Association for Delphi workers because of a three-year contract and the terms of the bankruptcy settlements of both GM and Delphi.

The lawsuit claims that GM rejected UAW’s request for payment in November and has since “failed and refused to make the contractually required payment.”

GM declined comment on the lawsuit.

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UAW to Name New President Next Week

United Auto Workers officials are expected to nominate the head of the union’s Ford Motor Co. negotiating group to be their new President at a meeting next Wednesday, according to a report in the Wall Street Journal. Bob King is supported by Ron Gettelfinger, who is planning on leaving the post.

“My sense is that the membership is hoping Bob will be a tougher negotiator,” said Brian Pannebecker, a 13-year veteran at Ford’s Sterling Heights plant that produces parts for F-series pickup trucks.